An online personal loan is a great way to fund an emergency expense, pay off credit card debt, or finance a major purchase if you don’t have enough savings to cover the cost. In fact, about 57% of adults have used a personal loan, according to Experian. This may be because average personal loan rates can be significantly lower than credit card rates, especially if you have good credit.
Tip:
The average rate on a two-year personal loan was 12.49% in February 2024, according to the Federal Reserve, compared to an average of 21.59% for credit cards.
Advertiser DisclosureFox Money rating
Fixed (APR)
6.99% - 25.49%
Loan Amounts
$5000 to $100000
Min. Credit Score
Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Fox Money rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Eligibility
Available nationwide
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Fox Money rating
Fixed (APR)
7.99% - 24.99%
Loan Amounts
$2500 to $40000
Min. Credit Score
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Eligibility
Available in all 50 states
Min. income
Customer service
Soft credit check
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Fox Money rating
Fixed (APR)
8.98% - 35.99%
Loan Amounts
$1000 to $40000
Min. Credit Score
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Loan amount
$1,000 to $40,000
Fees
Origination fee
Eligibility
Available in all 50 states
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
Within 3 days
Loan uses
Debt consolidation, paying off credit cards
Fox Money rating
Fixed (APR)
8.99% - 29.99%1
Loan Amounts
$5000 to $100000
Min. Credit Score
Does not disclose
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Loan Amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Fox Money rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Fox Money rating
Fixed (APR)
9.99% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fox Money rating
Fixed (APR)
10.95% - 24.51%
Loan Amounts
$5000 to $35000
Min. Credit Score
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Min. income
Customer service
Soft credit check
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Fox Money rating
Fixed (APR)
11.69% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Fox Money rating
Fixed (APR)
11.96% - 21.38%
Loan Amounts
$20000 to $200000
Min. Credit Score
Overview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland, Illinois, North Dakota, and Montana
Min. income
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Fox Money rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
The best online loans come with low rates, few fees, a choice of repayment terms, quick funding, and superior customer service. To help you narrow your options, our experts evaluated online lenders based on these factors.
Best overall
SoFi
Fox Money rating
Est. APR
8.99 - 29.99%1
Loan Amount
$5000 to $100000
Min. Credit Score
Does not disclose
Pros and cons
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
Good credit required
5,000 minimum loan amount
More details
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Loan Amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Best for fair credit
Upgrade
Fox Money rating
Est. APR
9.99 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
600
Pros and cons
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
More details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best for no origination fees (and low rates)
Discover Personal Loans
Fox Money rating
Est. APR
7.99 - 24.99%
Loan Amount
$2500 to $40000
Min. Credit Score
660
Pros and cons
Low minimum APR
May fund the next business day
Long loan terms available
Direct pay to creditors
No origination fee
No discounts offered
Secured loans not available
More details
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Eligibility
Available in all 50 states
Min. income
Customer service
Soft credit check
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Best quick loans for good credit
Splash
Fox Money rating
Est. APR
10.95 - 24.51%
Loan Amount
$5000 to $35000
Min. Credit Score
700
Pros and cons
Excellent customer reviews on Trustpilot
Funding as soon as the same business day
Large loan amounts available
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
More details
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Min. income
Customer service
Soft credit check
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Best debt consolidation loans for bad credit
Universal Credit
Fox Money rating
Est. APR
11.69 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
560
Pros and cons
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
More details
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Best home improvement loans and low rates
LightStream
Fox Money rating
Est. APR
6.99 - 25.49%
Loan Amount
$5000 to $100000
Min. Credit Score
700
Pros and cons
Same-day funding available
High maximum loan amount
No origination fee
Good credit required
No prequalification process
Not available in Vermont
More details
Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best for high close rates if pre-approved
Best Egg
Fox Money rating
Est. APR
8.99 - 35.99%
Loan Amount
$2000 to $50000
Min. Credit Score
600
Pros and cons
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
Origination fees
No discounts
Not available in DC, IA, VT, or WV
More details
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best for large personal loans
BHG Financial
Fox Money rating
Est. APR
11.96 - 21.38%
Loan Amount
$20000 to $200000
Min. Credit Score
660
Pros and cons
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
Cosigners allowed
Not available in MD, IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
More details
Overview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland, Illinois, North Dakota, and Montana
Min. income
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Best fast personal loans for all credit types
Upstart
Fox Money rating
Est. APR
7.80 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
620
Pros and cons
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
More details
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Eligibility
Available nationwide
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Best bad credit personal loans
OneMain Financial
Fox Money rating
Est. APR
18.00 - 35.99%
Loan Amount
$1500 to $20000
Min. Credit Score
540
Pros and cons
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
Availability
Origination fees
High starting APR
More details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
We evaluated the best online loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support.
Each data point was verified by a third party to make sure it was accurate and up to date. Read our full lender rating methodology for more information.
The term “online loan” may refer to any loan that you can apply for online, without visiting a bank or credit union to fill out paperwork. Mortgages, business loans, and auto loans are all available online, but we’ll focus on personal loans available from online lenders in this article.
An online personal loan is a type of installment loan that provides you with a lump sum of cash. You repay the loan in predictable monthly payments based on a fixed interest rate and set repayment term. Interest rates on most personal loans range from around 7% to 36%, depending on your credit, current debt, and income; repayment terms typically range from one to seven years. But some lenders offer longer-term loans for specific purposes, like home improvement.
Loan amounts are often available up to $50,000, though some lenders offer loans $100,000 loans or more if you can qualify. You can use the cash for almost anything, with a few exceptions. Each lender determines which loan purposes it will approve or allow. For instance, Happy Money only offers loans for debt consolidation.
Pros and cons of online loans
Pros
- Lower average interest rates than credit cards
- Prequalify and apply from home
- Fast funding
- Online loan management
- Discounts for autopay and/or direct pay
Cons
- Higher interest rates than some other loan types
- No in-person customer service
- Qualification requirements may be strict
- Must provide personal information online
A 2-year personal loan has an average interest rate over nine percentage points lower than the average rate on credit cards (12.49% vs. 21.59%, respectively), according to the Fed. This difference can make it advantageous to pay off high-interest credit cards with a personal loan, known as debt consolidation or credit card refinancing.
Another benefit of online loans: You can skip the trip to a financial institution and fill out the application from the comfort of your couch. Most online lenders also offer a prequalification process, which allows you to get a rate estimate without hurting your credit. Plus, you can often make payments online or via a mobile app, and many lenders offer autopay discounts and/or direct pay discounts (if loan funds for debt consolidation are sent directly to your creditors).
Tip:
Online lenders typically offer faster funding than brick-and-mortar banks. Some lenders even offer same-day funding if you submit and sign your loan documents before the lender’s same-day funding cut off time.
If you prefer in-person support, it’s not generally available from online lenders, though many do provide customer service by phone. In addition, you’ll need to provide sensitive financial information and access to your bank account on the internet. While most online lenders and loan marketplaces use encryption or other security measures to keep your data safe, you may want to avoid applying for an online loan on a public Wi-Fi network.
Since personal loans are unsecured, many lenders have rigorous financial requirements. You’ll generally need to have good credit and enough income to comfortably afford your new and existing debt payments, although some online lenders are more welcoming to bad credit borrowers. You also may pay a higher interest rate than you would with some secured loans, like home equity loans and auto loans.
- Check your finances: Compare your credit score and income to the lender’s minimum requirements to see which lenders you’re more likely to qualify with, and evaluate your budget to determine the monthly payment range you can afford.
- Compare rates: Prequalify with a handful of lenders and compare your estimated rate along with the term options each lender offers. Pay attention to the loan’s annual percentage rate (APR), which includes interest and upfront fees, like an origination fee.
- Compare repayment terms: Sometimes you can lower the overall cost of your loan by choosing a shorter repayment period. Most lenders offer 1- to 7-year repayment terms, but some loans can last 10 or more years, especially if used for home improvements or to buy a boat or RV.
- Compare fees: Some lenders charge an origination fee upfront. This can range as high as 12%, depending on your credit and where the lender caps such fees. Some lenders also charge late fees and insufficient funds fees.
- Compare discounts: Some lenders give rate discounts if you choose autopay or allow the lender to pay your creditors directly when using the loan to consolidate debt. Even a quarter of a percentage point could save you hundreds of dollars over the term of the loan.
- Select a loan offer: Make sure you can afford the monthly payment for the loan you choose, but bear in mind that you’ll pay less interest with a shorter term, and they may come with lower interest rates as well.
- Formally apply: Proceed with the loan offer of your choice. This will usually trigger a hard credit check, which could cause a small dip in your credit score. You may also be required to upload documents that prove your identity, income, and employment information.
- Sign your loan documents: Check that you’re happy with the final rate offer and review your loan agreement carefully before signing. You should receive the funds within a few days.
Check Out: Best Fast Personal Loans
It can be challenging to get an online loan with a poor credit score, but it’s not impossible. If you’re struggling, we have a few tips that can help with eligibility:
- Consider bad credit lenders: Some lenders use AI underwriting to look at a wider variety of financial data and approve more borrowers with lower credit scores. For example, Upstart has no minimum credit score requirement and may approve students and college graduates with no credit history, depending on other criteria.
- Apply with a co-signer or co-applicant: If you have a friend or family member with good credit who is willing to cosign your loan, you may have a better chance of getting approved at a lower rate. That’s because they agree to repay the loan if you can’t, which reassures the lender. Applying jointly with a co-applicant, like your spouse, can have a similar benefit.
- Look for online secured loans: If you offer an asset as collateral for a loan, that gives the lender recourse if you fail to repay, which lowers the risk. That can make it easier to get approved if you have bad credit. For example, Upgrade offers an auto-secured loan.
- Improve your credit: Check your credit report at AnnualCreditReport.com. If there are errors that may be dragging down your score, be sure to dispute them. Then, take steps to improve your credit score, like paying down debt and making on-time payments. While these strategies take time, a tool like Experian Boost may provide a small score increase in seconds, which may help you qualify for an online loan.
If an online loan doesn’t seem like the right fit for your financial needs, consider alternative options, including:
- Personal loan from a bank or credit union: If you’re looking for personalized support, apply for a personal loan at your local bank or credit union. Credit unions tend to offer lower rates, but you’ll need to join as a member. Many credit unions also offer payday alternative loans, which may be a good alternative if you have bad credit.
- 0% APR credit card: If you’re looking to fund a major expense that you can pay off within 21 months, consider a credit card with a no-interest introductory offer, like the Wells Fargo Reflect Card.
- 401(k) loan: If you have a 401(k) plan that allows loans, you may be able to borrow from it at a lower interest rate relative to an online loan, and the interest goes back into your account. There’s no credit score requirement, either, but there are risks and limitations, such as lost investment growth and severe tax consequences if you can’t repay the loan.
- Cash advance app: If you just need a few hundred dollars fast, consider a cash advance app, which does not require a credit check but may come with fees. MoneyLion is a good option to consider.
- Home equity loan: If you’re looking for a large loan with a low interest rate that you can pay back over a long term, consider a home equity loan, which allows you to borrow against the equity in your home. However, beware the risk of foreclosure if you fail to repay, and you’ll need to have sufficient home equity to qualify.
- Non-loan options: While an online loan can be a great financial tool, it also requires you to take on more debt. If you’re already struggling to make ends meet, you should explore government benefits or ask for help from your friends or family. If you’re overwhelmed by credit card debt, consider talking to a nonprofit credit counseling agency.
Applying for an online loan is quick and easy, and you can skip the trip to the bank. You’ll provide your Social Security number and answer a few questions through an online portal. If you’re approved, you’ll get a lump sum of money, typically within a few days. You’ll repay the loan in monthly installments with interest over time.
You can get an online loan directly from an online lender, like SoFi or Lightstream, or you can use a loan marketplace to compare your options in one place.
Payday loans can trap borrowers in debt. While it’s easy to get an online payday loan with no credit check, you’ll need to repay the loan within weeks, and payday lenders in some states charge fees equivalent to and over 400% APR. Since many borrowers renew their loans, fees can mount further. If you need money in a pinch, consider a cash advance app or payday alternative loan (PAL) from a credit union instead.
Hilary Collins has contributed to the reporting of this article.
Meet the contributor:Lindsay Frankel
Lindsay Frankel has been covering personal finance for six years, with particular expertise in loans, insurance, and real estate. She’s written hundreds of articles across a range of well-known outlets, including LendingTree, Investopedia, SFGate, and more. Outside of writing, she enjoys playing music and exploring nature with her rescue dog, Lucy.
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